Phil Hogan (Carlow-Kilkenny, Fine Gael) | Oireachtas source

The whole purpose of delivering these programmes is to reduce the level of administration as well as delivering the programmes. In 2013, the average administrative cost of delivering programmes through the LCDP has been 29%. Of €47 million allocated, some €14 million went in administration which is far too high. The structures of delivery will be assessed by the LCDC arising from the tender. It will depend on who wins the tender but I would expect that the experience of the local development companies already there will be favourites in order to win those particular programmes because of that experience. Experience will be an important criterion laid down by Pobal in the necessary criteria associated with the tender arrangements.

The transfer of undertakings does not arise. Recent legal advice given to me indicates there is no question of a transfer of undertakings obligation on behalf of the companies.

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